Analyzing SouthState Bank (NYSE:SSB) & Mechanics Bancorp (NASDAQ:MCHB)

SouthState Bank (NYSE:SSB) and Mechanics Bancorp (NASDAQ:MCHB) are both financial services companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, dividends, earnings and risk.

Profitability

This table compares SouthState Bank and Mechanics Bancorp’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SouthState Bank	20.25%	10.70%	1.42%
Mechanics Bancorp	-42.54%	-3.92%	-0.21%

Volatility & Risk

SouthState Bank has a beta of 0.77, meaning that its share price is 23% less volatile than the S&P 500. Comparatively, Mechanics Bancorp has a beta of 1.47, meaning that its share price is 47% more volatile than the S&P 500.

Insider & Institutional Ownership

89.8% of SouthState Bank shares are owned by institutional investors. Comparatively, 74.7% of Mechanics Bancorp shares are owned by institutional investors. 1.7% of SouthState Bank shares are owned by insiders. Comparatively, 4.6% of Mechanics Bancorp shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Earnings & Valuation

This table compares SouthState Bank and Mechanics Bancorp”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SouthState Bank	$2.39 billion	3.76	$534.78 million	$7.27	12.31
Mechanics Bancorp	$586.19 million	0.42	-$144.34 million	($6.76)	-1.94

SouthState Bank has higher revenue and earnings than Mechanics Bancorp. Mechanics Bancorp is trading at a lower price-to-earnings ratio than SouthState Bank, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent ratings and price targets for SouthState Bank and Mechanics Bancorp, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SouthState Bank	0	2	11	2	3.00
Mechanics Bancorp	0	1	0	0	2.00

SouthState Bank currently has a consensus price target of $115.31, indicating a potential upside of 28.81%. Mechanics Bancorp has a consensus price target of $14.50, indicating a potential upside of 10.60%. Given SouthState Bank’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SouthState Bank is more favorable than Mechanics Bancorp.

Summary

SouthState Bank beats Mechanics Bancorp on 13 of the 15 factors compared between the two stocks.

About SouthState Bank

SouthState Corporation operates as the bank holding company for SouthState Bank, National Association that provides a range of banking services and products to individuals and companies. It accepts checking accounts, savings deposits, interest-bearing transaction accounts, certificates of deposits, money market accounts, and other time deposits. The company also offers commercial real estate loans, residential real estate loans, commercial, and industrial loans, as well as consumer loans, including auto, boat, and personal installment loans. In addition, it provides debit card, mobile and funds transfer products, and treasury management services comprising merchant, automated clearing house, lock-box, remote deposit capture, and other treasury services. Further, the company offers safe deposit boxes, bank money orders, wire transfer, brokerage services, and alternative investment products, including annuities, mutual funds, and trust and asset management services; and credit cards, letters of credit, and home equity lines of credit. As of December 31, 2021, it served customers through 281 branches in Florida, South Carolina, Alabama, Georgia, North Carolina, and Virginia. SouthState Corporation also serves its customers through online, mobile, and telephone banking platforms. The company was formerly known as First Financial Holdings, Inc. and changed its name to SouthState Corporation in July 2013. SouthState Corporation was founded in 1933 and is headquartered in Winter Haven, Florida.

About Mechanics Bancorp

HomeStreet, Inc. operates as the bank holding company for HomeStreet Bank that provides commercial, mortgage, and consumer/retail banking services primarily in the Western United States. The company offers personal and business checking, savings accounts, interest-bearing negotiable order of withdrawal accounts, money market accounts, and time certificates of deposit; credit cards; insurance; and treasury management products and services. Its loan products include commercial business and agriculture loans, single family residential mortgages, consumer loans, commercial loans secured by residential and commercial real estate, and construction loans for residential and commercial real estate development, as well as consumer installment loans and permanent loans on commercial real estate and single-family residences. In addition, the company offers its products and services through bank branches, loan production offices, and ATMs, as well as through online, mobile, and telephone banking. As of December 31, 2021, it operated 60 full-service bank branches located in Washington state, Northern and Southern California, the Portland, Oregon, and Hawaii; and five primary stand-alone commercial lending centers in Central Washington, Oregon, Southern California, Idaho, and Utah. HomeStreet, Inc. serves small and medium sized businesses, real estate investors, professional firms, and individuals. The company was formerly known as Continental Mortgage and Loan Company. HomeStreet, Inc. was incorporated in 1921 and is headquartered in Seattle, Washington.